The process of quantifying CO2 emissions – Avoided Emissions Framework
Our vision is to bridge the gap between investors and green innovations, bringing them together and help future generations
Company is looking to raise
funds
A full objective green impact analysis is made using the AEF
framework along with conventional financial services
The Company is presented to investors in the
Viridi Network
The fundraising is closed and Viridi is
compensated by 5-8% of capital
raised
Companies are kept in the Viridi Database to easily conduct another fundraising and follow-
up analysis
Investors seek new project with a positive
climate impact
Early stage companies with impactful innovations are
approached
The impact is clarified and our new KPI reduced CO2 per
invested SEK is presented
The Viridi Process
The Viridi Impact
0,2 0,3 0,8
6,2
8,4
10,4
15,1
0,4 1,0 1,8
4,7
9,8
17,5
19,8
Impact Susatinable theme
Best-In-Class Norms-Based Corporate Engagement
ESG Integration
Exclusion
Invested globally by category (TUSD)
2016 2018
$31T invested globally in
2018
After extensive research and talking to investors we found that there is lot of green capital around.
However, there is no standardized process of
evaluating the
environmental impact of an investment. We also found that investors struggled to conduct this analysis on their own.
The next step is to divide the sum of all emissions by the number of products the company sells and then again by the number of functional units per product lifetime.
If we have the emissions of a washing machine manufacturer.
We divide the sum of emissions by the number of sold washing machines to get total emission of one washing machine.
Then divide the emissions associated with producing and using one washing machine by number of washes per washing machine lifetime.
We now have the total emissions of one wash, which makes it possible to compare to other products on the market.
The last step in the Avoided Emissions Framework is to compare the emissions of the company to competitors.
Explained through an example
The first step Is breaking down all operations that are linked to the company. Then the total emissions emitted in the production of a product is calculated. Thus, concluding a life cycle analysis of the innovation in focus.
Emissions per functional unit
Innovation 100
Competitor average (-) (-) 250
Carbon abatement factor = 150
By calculating the difference in emissions compared to competitors (for one functional unit) we can find the carbon abatement factor
Viridi will gather investors and complete a full impact analysis on the Innovation. A network effect will be created when many investors are connected to the network.
The investors can not complete a full objective impact analysis on
Green Innovations.
Investors The green innovations are in
need of capital and support in visualizing their benefits in the eyes of the investor
Green Innovations
Product Value chain
Transportation & Distribution Processing of sold goods Use of sold products
End-of-life recycling of sold products
Investments Purchased goods and services
Capital goods
Fuel & Energy related activities Transportation & distribution
Waste generation in operations Business travel
Employee commuting Leased assets
Electricity Steam
Heating Cooling
Company facilities that emit C02 directly
Company Vehicles (diesel/gas)
3 2 1 3
Emissions of suppliers (and their suppliers)
Emissions of energy suppliers
Direct emissions of organisation operations
Emissions of costumers’
product usage
The sum of all emissions In the companies product value chain is reported according to the GHG protocol standards.
Scopes
I. II. III.
Viridi Capital catalyzes sustainable growth towards
2030 and making sure Sweden becomes a leader in
the field.
8.2
By engaging in our network sustainable development can
be built through strategic partnerships
17.17
Viridi Capital was founded on the idea of helping innovations get better access
to financial services.
9.3
The companies Viridi Capital aim to help are going to be innovations that take a stand
in the climate action 13
By focusing on these four goals, Viridi Capital aims to create a unique platform where investors
and innovations can meet, connecting green capital to the
right innovations
9.3 |
Kasper Oldmark - 24328|
Erik Rystedt - 24392|
Andres Panagos - 24393|
Jonathan Segelman - 24464|
Richard Jungner - 24467|
Fabian Boberg - 24491Thank you.
InterviewsFebruary 19, 2020 - Martin Lundvall, Fund Manager SEB Green Bond Fund;
Mattias Ekström, Fund Manager SEB Green Bond Fund.
Mars 3, 2020 - Malin Forsgren, Senior Consultant 2050 April 2, 2020 - Linnea Granström, Consultant 2050.
April 28, 2020 - Workshop: Malin Forsgren, Senior Consultant 2050;
Jannike Hising, Consultant 2050
Sources
Global Sustainable Investment Association, 2018 Global Sustainable Investment Review Mission Innovation, Avoided Emissions Framework, Stephens A, Thieme V.
Greenhouse Gas Protocol, GHG Protocol Corporate Standard Revised
Viridi Capital
The Green Investment Landscape
Together with sustainability consultants 2050, we concluded that the biggest potential impact to be made is within the category of Best-In-Class investments.
Investments in projects with a positive ESG performance relative to industry peers. Although not widely invested into today, it is one of the categories with the highest growth rates.
Comparing two funds at a large Swedish bank shows that in the category of exclusion, not much differentiates a green fund from an uncategorized. In a time of greenwashing there is a high-level of information asymmetry leaving investors uncertain of what the impact of their investment really is.
Source: Global Sustainable Investment Association
Tools & Services
Avoided Emissions Framework Life Cycle Analysis
The Viridi Network Full Impact Screening
Key metric produced – Reduced CO2 emissions per invested SEK
Conventional Financial services
Investors Green Innovations
Global
✓Letting companies focus on what they do best, develop and improve innovations
✓Innovations are visualized and quantified so that investors can comprehend their true potential,
increasing their chances of completing successful fundraisings
✓More green innovations find support and significant growth
✓Capital is allocated to
innovations that make a real impact
✓Investors receive a deal flow of truly green investments
✓Reduced information asymmetry in a time of green washing
✓Investors can more easily find the right project for them
✓Investors maximize their impact/invested sum
✓Investors receives a clearer view on the actual impact of their investment
✓Viridi Capital charges an up- front fee for the full impact analysis and 5-8% of capital raised
almi invest
By multiplying the carbon abatement factor with the company’s size we can get the company’s total avoided emissions. These are the emissions that would theoretically been emitted if the company had no market share and consumers would turn to competitors as an alternative.
Looking ahead, we are discussing the possibility of realizing or project into a fully functional company.
We have confidence that our project could generate a true impact on the green investment landscape, something which has been supported by environmental consultants 2050. 2050 has shown interest in our business proposal and discussions of a possible partnership is in the works.
